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W. Africa Crude-Freight costs ease, especially for VLCCs

Published 18/10/2019, 16:09
W. Africa Crude-Freight costs ease, especially for VLCCs

LONDON, Oct 18 (Reuters) - Freight rates eased further on

Friday, especially for the largest oil tankers, promising some

recovery for West African oil prices which had touched

multi-year lows.

* VLCC freight costs eased more rapidly than smaller

Suezmaxes, making it less advantageous to ship on the latter.

* Prices for Suezmaxes were estimated around world scale

190-200, with one European buyer estimating further relief to

around 150 by the end of next week.

* Nigeria's NNPC cut its November official selling price for

Bonny Light crude to dated Brent plus 58 cents per barrel and

for Qua Iboe to plus 63 cents per barrel, down from 172 cents

and 167 cents respectively.

* Vitol offered a prompt cargo of Forcados in the window at

dated Brent plus $5.40 on a delivered basis Rotterdam during

Nov. 4-5, up significantly from another cargo offered at $4.50

to $5.00 last week.

* India's IOC award a tender for West Africa crude on

Thursday, though the identity of the winner did not emerge.

* India's HPCL's buy tender for three VLCCs of crude loading

in the first quarter of next year was set to close Friday.

* The Forties oil and gas pipeline system (FPS) has reopened

after a power surge following a lightning strike halted it for a

few hours, operator INEOS said on Friday. NEWS

* Tankers that had been scheduled to install

emissions-cutting equipment ahead of stricter pollution

standards starting in 2020 have deferred their visits to the dry

docks to capitalise on an unexpected surge in freight rates,

three trade sources said. * U.S. crude exports to Asia, which have slumped due to

record freight costs, stirred on Thursday as rates slid and the

premium in Asia for Russia's ESPO Blend oil sent buyers back to

U.S. grades, according to market sources. * China's crude oil throughput rose 9.4% in September from a

year earlier to its highest level on record, official data

showed on Friday, led by increases from new refineries and as

some independent plants returned from maintenance.

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